The Erie County Gaming Revenue Authority eventually hopes to award grants to organizations such as the Erie Zoo and Erie Art Museum entirely from interest earnings on an endowment.

The authority took a step toward that goal Thursday when it put nearly $1.4 million into the endowment, raising the fund held in trust at the Erie Community Foundation to $10 million.

The authority's previous investments in the endowment, growth in the market and a donor's contribution all have led to the total fund amount for what the agency calls nine lead assets.

The authority administers grants for various organizations and programs from part of the estimated $12 million in annual gambling revenue that Erie County government gets from Presque Isle Downs & Casino.

"Lead assets are vital to Erie County's economic health. Through this growing endowment, these nine organizations will have access to gaming funds for years to come regardless of leadership or revenue changes," Perry Wood, the authority's executive director, said in a statement.

Amanda Brown Sissem, executive director of Erie Arts & Culture, said in a statement that the endowment "is a critical tool in helping to ensure our long-term stability."

The authority on July 24 awarded the nonprofits a collective $323,406 in funding for a six-month period. They will get another check in December.

The money for the lead assets now comes from a Gaming Revenue Authority account, but future annual distributions are expected to be drawn from interest earnings on the endowment.

The authority could start that process in 2015, but no final decision has been made. The first distributions could be a blend of endowment money and authority account funding, Wood said.

The cultural, historical and entertainment nonprofits can use the money for any operational purposes, including capital improvements, equipment purchases, technology upgrades and personnel.

The Gaming Revenue Authority put $5.4 million into the endowment in 2012, and previously invested another $1.7 million into the fund.

The authority said that Erie County residents and patrons of the organizations can endow all nine lead assets with one gift through the Erie County Lead Assets Endowment Fund at the Erie Community Foundation.